What to Watch for From Fed

Minutes of the Federal Reserve's July policy meeting hit the wire today. Spencer Jakab breaks down what to look for when the minutes hit on MoneyBeat. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... ay ay mm mm ... minutes of the Federal Reserve's July policy meeting at the wiener two p m New York Times ... what will they say will the market maker that ... Spencer Jacob is here to break down what to look for when the minutes that the state ... Spencer I wrote about this and that is ... and you are always every single morning and that they ... what do you expect at its meeting this ... bubble beard meeting and no one expected them to do anything ... and in ... Bratsk a lovely looking for ... were looking for what they're thinking that's what we're looking for ... and this meeting takes on of ... Mac greatly magnified importance ... or the minutes of this meeting ... because we don't get that much in the statement you get the nuances from the minutes ... usually this time of year you have the Jackson Hole meeting which is always close to watch Frank is not attending this year's gets weak and that's coming up this weekend as easy as the outgoing Fed Chairman chose not to ... not to attend so this not likely to be a lot of news from the remember a couple years back QE two was announced there are ... some of the minutes are really going to cause a lot ... and since September just a month away is when the cut the betting is for cuties that the dreaded taper to begin ... for people looking for all kinds of clues there looking for three things ... that ... they're looking for when ... it is a good September ... or later ... the current betting is on September ... the other looking for how much can they say that ... journey of a thousand miles begins with a single step for the journey of you know reducing of trillion plus ending QE a year but begin with ... just ten billion e e um um um um which is which is slightly over is up twelve percent of the the amount ... that's not that much so that the amount is going to be watched closely ... aam and Dom you know the be some hints there and then the other thing is for guidance which is I would say is the most important ... yet ... now you look at Treasury yields over last year so I mean they will have been even gone out and are up almost two now I know ... this we can around to it though I mean is he that are right there ... at how much of this is already being priced ... that second question it because if you ... that the songs in the four guidance is so important because the for guidance know if you ... if they give an indication the market they give comfort the market ... that they're not likely to up to raise the rate that they directly control ... until twenty fifteen or perhaps longer Bill Gross thinks it might be twenty sixteen or even pass that ... they can go up that much more just because of the of the term structure of of interest rates so ... you might ... even have overreacted mean ... people are really ... reading too much into ... into QE ... IV with a really really you know that they're the market is confuse the bond market is confuse between tapering am typing this there is enough is not going to be tightening of monetary policy ... then a slight reduction in tapering ... really you may already have gone too far car's appeal to some see it about when to let tightening come on interest rates ... tapering is the bond buying this team list the QE night ... and then reducing the amount of bonds that they are buying on a monthly basis right right because it even if they reduce it is still at the US the sale of the ... confusion is an area so it's an end but really both to bond buying right you bought bonds that the you know to separate and very low and ... and the new body of bonds in the open market and a long and too stupid to try to influence rates but God kept them ... at the long and the Fed actually could cap rates that is the summing that he physically could do it could cap ... of ten year Treasury yields if it chose to that we are much more ... drastic step to say that things will worsen by mines until brakes on this level in the key that something that's that's theoretically possible to love that with that it would become an open and the amount of rugby of monthly amount it would be of a re and that's ... that's a sense of it that you know ... if they don't tighten if there are people don't believe that the Khona tightened for a few more years ... though we may have gone up enough because no then there's that there's a very strong relationship between for the shortages were long and isn't that ... then get back to be very bullish if the ... good of the hints on for guidance are are ok this happened to call for party ... building